National Life's new RRSP Loan Program is designed to make it easy for clients of financial advisors maximize their income tax savings and retirement nest egg.

Through a program arranged by TD Canada Trust, loans starting at a minimum of $2,500 and going up to maximum allowable contribution limits, including any carry forward amounts, can be provided at very competitive rates and with flexible terms.

And, unlike many other RRSP loan programs that require you to pay back within one year, these loans can be taken over as many as 5 years, keeping the monthly payment affordable even when borrowing large sums. And, with interest rates at their lowest levels in decades and stock markets experiencing lower than average valuations, this is an ideal time for your clients to borrow money to contribute to their RRSP.

Advisors clients can choose between a variable interest rate for loans up to two years or a fixed rate for loans between one and five years. If the TD prime rate changes during the term of a loan with a variable rate, the final payment will increase or decrease to reflect the change.

The funds can be deposited into an RRSP, a spousal RRSP, or a self-directed account, and can be invested in any of National Life's eligible investments which include: Guaranteed Investment Accounts, UltraFlex II Segregated Funds, and our new Alternative Investment Strategies.

Financial advisors clients have until March 3rd, 2003 11:59 EST to submit an application, and all those that are approved will qualify for the 2002 taxation year. Once approved, TD Canada Trust is usually able to fund the loan within 24 hours, putting your clients’ money to work immediately.

With interest rates at their lowest levels in decades, and stock markets experiencing lower than average valuations, this is an ideal time for investors to borrow money to contribute to their RRSP.

Investors can apply for an RRSP Loan up to the maximum allowable government contribution limit, including any carry forward amounts. The program is underwritten by TD Canada Trust and offers the following competitive rates:

1 Year Variable Rate - TD Prime
2 Year Variable Rate - TD Prime
1 Year Fixed Rate - TD Prime + 1.0%
2 Year Fixed Rate - TD Prime + 2.0%
3 Year Fixed Rate - TD Prime + 2.5%
4 Year Fixed Rate - TD Prime + 2.5%
5 Year Fixed Rate - TD Prime + 2.5%

Please note:

We have featured National Life's RRSP product only as an example. RRSP loans are on offer from a variety financial institutions, talk to your Fiscal Agents investment advisor for current loan programs and investment opportunities.